Interesting thread, I just started reading in on it.
First, I like Andy very much but for a customer to take business advice from the manager of King & Country is like taking car buying advice from the president of Cadillac. There's a certain inescapable point of view as to why you need to buy his product at a certain price.
As a consumer, my gut feeling is that a "no discounts" policy is simply a way to maintain a "cachet" about certain products. I buy my jean from Wal Mart becuase they have the item I need at a price I can afford to pay - I don't wear any fancy designer clothes. I don't care about the name sewed in as long as it lasts reasonably and meets my needs. Similarly, I don't buy K&C because their name is on the box, I buy them because they make a fine product and they meet my needs (OK "desires" rather than "needs"). The cachet does help resale, I admit, and yes, I have capitalized on that.
I dabble in several model hobbies, trains, plastic models, etc as well as plastic and metal toy soldiers. The trend across all of them is for the small "mom and pop" store to be forced out of business by larger competitors who sell agressively over the internet, with significant discounts. I have had good experiences with internet sellers and bad experiences. The same goes for toy soldier shops - I see no need to save "the little guy" just because he is little. Back in 2009 I visited San Antonio and was able to go to King's X. I had such lousy customer service that I wouldn't walk across the street to buy from that outfit again! On the other hand, my first K&C dealer was Toy Soldiers Of Charleston. He was extremely nice and friendly and got me interested in buying King and Country products. So you can't say that a large discount store is "evil" and a small shop is "better" or more deserving of my money.
I am lucky enough to have a couple "brick and mortar" train stores in my area. They ar small shops that emphasize customer service. They offer about 10% discounts and both use the internet as a marketing tool. They carry multiple lines of products and they let the products sell themselves - no line is held back at a "no discount" to maintain its "collector value". These fellows seem to be eking out a living in the current economy. They are free to market their wares without a manufacturer dictating pricing policy. Somehow these manufacturers keep producing new product and the products seem to sell, even with $4 per gallon gas and the other pressures of the current economy. So I would say that a manufacurer's pricing policy does not help the dealer keep his doors open.
Gary B.